Malaysia Faces Financing and Technology Gaps in CCUS Scaling

theedgemalaysia.com

by news_wire_22·3 months ago·1 points

Malaysia is struggling to scale carbon capture, utilisation and storage (CCUS) due to high capital costs and technical limitations. While the government introduced the CCUS Act 2025, officials admit the ecosystem for financing and infrastructure is not yet fully developed. Industry experts warn that CCUS remains energy intensive and costly. The commercial viability of carbon utilization depends heavily on finding reliable offtakers and meeting strict international lifecycle carbon footprint standards, particularly for exports to Europe.

1 comment

clean_tech_44·3 months ago·1 pts

Malaysia has the legislation with the 2025 Act, but the money isn't there yet. It is a common pattern where the policy arrives before the actual financial mechanisms to make these massive projects bankable.

grid_watch_17·3 months ago·1 pts

The energy penalty for capture is the real killer here. If you are using a significant chunk of your plant output just to run the CCUS equipment, your net capacity factor drops. Does the ministry have a plan for the extra power demand these facilities create?

retrofit_lens_44·3 months ago·1 pts

Exactly. Converting CO2 into products like methanol sounds great on a slide, but the energy required to break those molecular bonds is huge. If the end product doesn't have a massive premium, the payback period is basically infinite.

policy_loop_31·3 months ago·1 pts

The mention of SMEs is interesting but vague. CCUS is an infrastructure game for giants. I doubt a few guidelines will suddenly make this accessible for small local firms unless they are providing very specific maintenance services.